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Pensions >>> annuities for diabetics

sterling

Well-Known Member
Messages
161
Location
Centre of England
Type of diabetes
Type 2
Treatment type
Tablets (oral)
A short abstract of an article is presented here:

http://www.ncbi.nlm.nih.gov/pubmed/20042534

"Subjects were a mean (SD) age of 60.7 (8.6) years, had a blood pressure of 141/83 (17/10) mm Hg, total cholesterol level of 4.5 (0.75) mmol/L, HDL cholesterol level of 1.2 (0.29) mmol/L, with median (interquartile range [IQR]) known diabetes duration of 6 (3-11) years, and HbA(1c) of 8.0% (7.2-9.0). Sixty-five percent were male, 91% white, 4% Afro-Caribbean, 5% Indian-Asian, and 15% current smokers. The UKPDS Outcomes Model median (IQR) estimated age at death was 76.6 (73.8-79.5) years compared with 81.6 (79.4-83.2) years, estimated using the UK Government Actuary's Department data for a general population of the same age and gender structure."

So the difference between the average person's life expectance and that of a diabetic could be 81.6 minus 76.6 = 5 years.

But, the article goes on to say UK Government Actuary's Department data suggests 4.3 years.

"The UK Government Actuary's Department data overestimate likely age at death in individuals with type 2 diabetes, and at present, ''enhanced impaired life annuity'' rates do not provide equity for people with type 2 diabetes."

Are enhanced impaired life annuities poor value for diabetics? Should diabetics avoid annuities in favour of drawdown?
 
Impossible question to answer! Drawdown is only right for some people and not others and is dependant on an awful lot of factors. The market is evolving all the time with hybrid products coming over from America from the likes of Metlife (now operating under another name that is evading me!).

The only answer to this is a proper appointment with an IFA to discuss YOUR circumstances in relation to other assets/illnesses/marital status/other provision etc etc.

Ali (IFA currently de-authorised caring for parents)
 
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